Crypto Daily | Bitcoin, Ethereum Rise as Traders Anticipate "Golden Crypto Era"; Crypto Stocks Rally to Start 2025

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Bitcoin, Ethereum Lift As Traders Anticipate 'Golden Crypto Era' Under Trump

Leading cryptocurrencies edged higher Friday as traders returned from New Year's break with bullish optimism.

Bitcoin surged to $96,682 as upward volatility returned to the market. The leading cryptocurrency lost steam since the $100,000 tease on Christmas, but the latest uptick has taken its weekly gains into the green. Ethereum almost touched $3,500 in the morning before retreating to the $3,500 zone.

The market has high expectations that the incoming Donald Trump administration will bring a golden era for cryptocurrencies.

Crypto-dependent stocks also gain on the first day of trading in 2025. Canaan Inc. rose 8.29%; Bit Digital rose 6.48%; Coinbase, MicroStrategy increased more than 3%.

ETF Companies Are Racing to Launch the Next ‘Hot’ Crypto Fund

Paperwork covering a plethora of newfangled offerings was filed with the US Securities and Exchange Commission as 2024 was ending. Among the proposed products was an ETF from ProShares that would denominate the S&P 500’s return in Bitcoin. Funds planned by Strive Asset Management and REX Shares would offer exposure to convertible bonds issued by companies to buy Bitcoin. And ETF company Volatility Shares envisions getting inverse and leveraged Solana funds off the ground, alongside a vehicle that would track the sixth-largest digital token using futures contracts.

The filings, if approved, would bring about more than a dozen new crypto-centric funds to the space in 2025, just a year after the inception of the first-ever US Bitcoin ETFs.

Crypto Altcoins Are Outperforming Bitcoin as Investors Diversify in 2025

Bitcoin rose as much as 2.9% to $97,526, while altcoins like Ether, XRP, and Dogecoin jumped more than 4%, and Solana climbed as much as 8.2% as of 11:49 a.m. in New York.

“Heading into the new year, market participants have started to diversify their exposure by allocating capital to representations of more speculative narratives,” said Chris Newhouse, director of research at Cumberland Labs.

Many investors are expecting a more friendly regulatory environment for crypto this year with Donald Trump’s incoming presidency. Altcoins that have previously faced scrutiny from the US Securities and Exchange Commission have seen large inflows since Trump’s election victory and his nomination of crypto supporters to his administration.

Bitcoin Spot ETF Flow

The Bitcoin spot ETF with the highest net inflow on Jan 2 was Bitwise Bitcoin ETF, with a net inflow of $48.31 million. While iShares Bitcoin Trust showed a net outflow of 332.62 million, according to SoSoValue.


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